Potential burden: $3.8M shortfall

TAVARES -- Lake County government could face a $3.8 million budget shortfall next year unless commissioners cut spending or raise taxes.

Commissioners will get a preliminary peek at the bad news during a workshop today when they also are to discuss the option of raising the county's gas tax by 5 cents a gallon to fund road repairs.

"It's going to be a really bleak year," said County Manager Cindy Hall, scanning the figures, which project that Lake revenues will fall by 10 percent, about $18 million.

The preliminary budget analysis assumes the county will offer no raises, reduce spending by $14 million and not raise the property-tax rate or sales taxes.

Commissioner Jennifer Hill said a grim outlook was expected considering the weak national and local economies.

"Nobody should be surprised at all," Hill said. "We just have to continue to exercise careful cost management."

The commission, which recently imposed a hiring freeze, might discuss possible cost-cutting measures today, including trimming some service hours and programs.

The board also may take a closer look at boosting the gas tax, a revenue route suggested by the Transportation Alternative Funding Task Force, an advisory panel.

At the commission's request, public-works employees surveyed gas prices in surrounding counties, including Polk and Volusia, both of which have heftier gas taxes.

The survey, which used prices compiled by automotive.com, showed the price of a gallon of regular unleaded gas was higher in Lake County than every neighboring county but Marion and Volusia. Marion levies the same 7-cents-a-gallon local tax on fuel as Lake County.

Volusia, where gas was $1.929 a gallon, charges a 12-cents-a-gallon tax. Gas in Polk, which also levies 12 cents on the gallon, was 2 pennies a gallon cheaper than Lake, where the lowest price for gas was $1.879.

Raising the gas tax by a nickel would generate $5.39 million a year, which would be shared by Lake and its 14 municipalities, according to an estimate included in commission documents.

Nonetheless, a higher gas tax, which would need the support of four of the five commissioners or a voter referendum, seems unlikely now.

Hill and fellow Commissioner Linda Stewart both oppose an increase.

"Too many people are hurting from the economy already," Stewart said. "My conscience won't let me add any more to it."